Korea LNG supply switched from Arun to Bontang

Government said on Tuesday it had decided to switch 740,000 metric tons of liquefied natural gas (LNG) production per annum from Arun in Aceh to Bontang in East Kalimantan in a bid to maintain gas supply to Aceh industrial users.

?Starting 2003 until the end of the contract, Bontang will supply all LNG supply under Korea II contract. That way, natural gas supply for Aceh fertilizer firms and paper mill could be fulfilled,? said Kardaya Warnika, acting director general of oil and gas at the ministry of energy and mineral resources in a parliamentary hearing.

Arun currently supplies 30 percent LNG supply under Korea II contract which will expire in 2014, while Bontang supplies the remaining 70 percent.

Kardaya said under the Korea II contract, it was possible to switch supply source and Kogas had been notified about the change.

Kardaya said without the switch, it would not be possible to supply natural gas to feed Aceh industrial users.

Natural gas supply to feed Arun natural gas liquefaction (NGL) comes entirely from Exxon Mobil gas fields in Aceh. (alex/godang)